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Uber and Lyft to Raise Wages Following Months of Complaints

Uber and Lyft have unanimously reached an agreement with lawmakers on Saturday, May 18 that will enable the pay raise for drivers across the states while “preempting Minneapolis and other cities from enacting their own wage floors.” 

A group of drivers from the Minnesota Uber/Lyft Drivers Association initially held a news conference in the state Capitol with Democratic lawmakers, who pledged to address the drivers’ complaints that had been coming for a long time, regarding wages and workplace protections. 

Lawmakers, driver activists, and the companies have been embroiled in lengthy negotiations with several threats made by the companies to leave Minnesota. A version of the bill was alo vetoed last year by Gov. Tim Walz, who was primarily responsible for lengthening negotiations through a state task force over the last year.

From Jan. 1, 2025, the bill will allow drivers to earn at least $1.28 per mile and 31 cents per minute, “which is within the general range of rates needed to ensure Twin Cities drivers earn the Minneapolis minimum wage of $15.57 per hour after accounting for their vehicle expenses and payroll taxes,” according to a state study of driver compensation.

In a statement released on Sunday morning, Uber spokesman Josh Gold claimed that the rates and insurance requirements would lead to price increases that “may hurt riders and drivers” but ensured the company would continue operating in the state under the compromise brokered by Walz.

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